TD Cowen Raises Warner Bros. Discovery, Inc. (WBD) Price Target to $26

On February 27, Warner Bros. Discovery, Inc. (NASDAQ:WBD) saw TD Cowen raise the firm’s price target on the stock to $26 from $22 while maintaining a Hold rating following fourth-quarter results in which both revenue and adjusted EBITDA exceeded expectations. The firm noted that its valuation incorporates a 65% probability of a potential acquisition at $31 per share and a 35% chance that regulatory challenges could block a deal, which could send the stock back toward $12. Analysts suggested that state attorneys general could challenge potential buyers, given the scale of a transaction involving major media companies.

On the same day, Deutsche Bank downgraded Warner Bros. Discovery, Inc. (NASDAQ:WBD) to Hold from Buy with a price target of $31, up from $29.50. The firm cited limited remaining upside following Warner’s determination that Paramount Skydance’s $31-per-share offer represented a superior proposal. Deutsche Bank also noted reports that Ted Sarandos, co-CEO of Netflix, visited the White House to discuss the potential transaction, suggesting the possibility of competing bids. Analysts indicated that a combined Paramount-Warner entity could emerge as a formidable competitor to Netflix in the global streaming and entertainment landscape.

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is headquartered in New York City. The multinational media and entertainment conglomerate was formed on April 8, 2022, through the spin-off of WarnerMedia from AT&T and its subsequent merger with Discovery, Inc.

While we acknowledge the potential of WBD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 12 Cheap Stocks That Will Go to the Moon According to Reddit and 10 Best Oil & Gas Drilling Stocks to Buy.

Disclosure: None. Follow Insider Monkey on Google News.